Closing Date Extension/Contract Cancellation

[Betty Huang]

Scenario: This is NYC based. Contract is signed with an "on or about closing date on June 15th" meaning they have until July 15th to actually close. Due to COVID-19, seller originally was willing to close and pay rent.  The amount we issued them to pay rent was too high and they didn't both to renegotiate and say they now just want an extension till 9/30.  They need the extension because their new property is not ready.  One of the clients is an elderly handicap male that needs elevator service.  Please note, I am fine with extending, I am just kind of upset that they offered to rent and then turned it down and now I'm on the worse end of the stick.

A few questions:

-Would it be fair to request a compensation for the additional two months I have to now pay rent for?

-I am fine backing out of this contract as this situation has gotten me very frustrated.  I signed for this house back in March so I've been waiting for quite some time now. My attorney told me the seller's attorney can claim they did not default and go to court and perhaps take my deposit.  Is this something that's possible?  I can't find anything like this on the web.

[David M.]

@Betty Huang

I think it would be fair to ask for the compensation...  In my area, it doesn't happen often.  But, in your story it would make sense to try in my opinion.

I guess they didn't default because you need turn down the extension and wait until July 15th to see if they perform.  hmmm..  First, who is holding onto the deposit?  Your attorney or theirs?  Or, another escrow agent?  Just trying to see how hard it would be get back.  Secondly, what is your feeling/opinion of them actually going to court to get the deposit back?  There are plenty of fees and time.  How much is the deposit?  even if $10k to $20k they'd probably spend that much or close to $10k to get the judgement.  Then, they'd have to figure out how to collect.  If they were petty and had plenty of money to burn, I guess they would sue you.

All that being said, let me tell you what I tell my clients:  "You are buying the house/property, not the sellers."  So, what's it worth to you to take ownership of this property?  Try to take the emotion out.  I know.  Its very hard.  I have the same problem.

Hope this helps.  Good luck.